Tim Ferriss author of 4 hour workweek, early investor in Uber, Facebook, Twitter, Alibaba, Shopify, Duolingo, and many more.. has been known for finding the most efficient way to make more money with less input..
Quoted as the ‘Oprah of Audio,’ find out exactly how he was able to charge such premium prices for his services.
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- The Mike Vestil Podcast
- How Tim Ferriss Became the ‘Oprah of Audio’
- Dunbar’s Number
- Tim Ferriss’ Sponsor Rates
- The Tim Ferriss Effect
- Tim Ferriss Guide To Podcasting
- US podcast ad sales $45 million in 2013 (compared with $40.2 billion for total radio revenues)
While I was creating my podcast, I started looking around other podcasts and what were other people doing in my space.
One of the things that I came to think of was Tim Ferriss.
So I did a little bit of research until I landed on his website, and this is what I noticed from his sponsor interest form:
To those who don’t know what a sponsor is, it’s basically somebody, a company maybe, it could be like a blue host company or a hosting company that actually has a marketing budget to spend.
For example, Nestle, which has like a three billion dollar a year marketing advertising budget..
They want to turn that budget and give it to people like you to basically put their product, offer, or service in front of their ideal audience.
Being the fact that Tim Ferriss, everything that he touches turns into gold and being a best-selling author, he is a very prime prospect for these companies to give money to in terms of advertising.
I was looking at his blog the other day and something literally blew my mind!
I come from the place where we sell courses or ebooks or affiliate marketing and a lot of the commissions are maybe at most $1, 000 even up to $5, 000 if you’re doing high-ticket group coaching.
Then you have Tim Ferriss, the unicorn of it, where he says per episode sponsorship is currently at $54, 000..
“And we asked for a minimum of three episodes to start and numbers consistently over perform inventory so if we sold out three to six months in advance so we do not offer discounts more than 80% of our sponsors renew and many books 6 to 12 months in advance to secure pricing since prices increase as popular”
If you listen to Gary Vaynerchuk and you ask him why doesn’t he sell courses, that’s because he makes more money on the B2B on charging companies a hundred thousand dollars for him to speak..
And it’s the exact same thing that Tim Ferriss does for his show!
Now you’re probably telling yourself that you’re not Tim Ferriss, you didn’t write a book, and you can’t charge premium prices.
So how can you actually implement it in your business?
Let me share to 6 steps for you to get there!
Step #1 BUILD A TRIBE
Understand that you need to build a tribe.
I actually did a little bit more research and there’s this thing known as the Dunbar number, here’s what it is:
We were meant to operate as a tribe.
that’s a reason why we crave human connection..
That is why loneliness is one of the biggest fears in the world. It’s because we crave that unity, that community to be with somebody else that thinks like us.
And what Robin Dunbar found out is there are 150 people that you can actually create meaningful relationships with.
If you think about it, it makes sense, right?
Back in the tribal days, when you were cavemen, you didn’t have social media platforms where you could connect with a million people with a press of a button.
Back in the day, us as a community was built for one goal and one goal only: to survive.
That is why we crave human connection.
Well here’s the thing, because of social media and us having the ability to put our brand or offer in front of people, consistently, what happens is you have people like Kylie Jenner and Drake and all of these influencers getting into the “Dunbar number” of the mainstream media.
So think about this..
Most of the time now, when people are on Instagram, they don’t see their mom and their tribe. They don’t see their friends and their tribe.
They’re thinking of Kylie Jenner, they’re thinking of Gary Vaynerchuk, or they’re thinking of Grant Cardone.
Because of these social media platforms, we now have the ability to get intimate with as many people as possible.
If you think about that, that is how Oprah Winfrey became a billionaire.
It’s because she was able to build that connection through her TV show, with the power of building connections with a mainstream audience..
Where even though psychologically, we could only have 150 meaningful relationships because she created long-term content that was authentic. She attracted her tribe.
This is what you guys must remember..
Your vibe attracts your tribe.
I think that’s why Gary Vaynerchuk blew up because he was frank and authentic!
Tim Ferriss did the same thing for his audience.
Since my audience is now maturing, I realized that even though I could put a really awesome video online and people could be watching..
Most people that have things to do with their lives that are six-figure business owners do not have the time to consume YouTube videos!
That is why for this reason, I don’t really have time to watch videos because I’m always either traveling, I’m on the plane, I’m driving or I’m doing something.
One of the things that made Tim Ferriss successful was his podcast was the perfect medium to build that long-term relationship with so that they don’t actually have to have that dedicated time.
It’s something that they can passively learn into.
But when you are passively in people’s ears, you could be anywhere in any one..
You could constantly have his voice in your ear on a subconscious level.
That’s why you see people like the founder of Twitter to start-up investors to just business owners that don’t have time for these other media platforms.
Why do they tend to go more towards Twitter and podcasting?
It’s because it’s easily digestible for your dream client.
And here’s the thing about his content, the content has to be you.
What you need to do is you need to write down all your list of values.
WHAT IS IT THAT YOU VALUE?
Because if you are just making content for things that just because that is the viral thing and you’re not creating content for you, then you will not attract a relevant audience to your product, offer, or service.
That was the biggest problem for me.
I was like making all these videos to just try to attract all these people that wanted to make money online fast.
Because of that, I felt this disconnect inside of me because my values did not resonate with the people that I was attracting.
But what changed was when I realized what the values I wanted, what I stood for, and that was tribe community, authenticity, and being my real self in front of people..
That’s why on the podcast, we go like 2 or 3 hours long on the conversation.
That is what fueled me more and more. You get more authentic with your brand and your message not because you think that’s the best marketing play but because that is who you are..
That is a faster way for you to start attracting that tribe!
Remember, you don’t need a hundred thousand views or more per episode or for any one of your contents to be big.
It doesn’t matter.
Because remember, if you could attract that 100 or 150 tribes of people that resonate with you, you are creating a tribe of people that resonate with your needs, wants and desires and selling them products that they need instead of selling them what they think they need or what they want.
When you understand that it’s about the tribe, it’s not about the business, you could create any business that you want which leads me to the second step.
Step #2 SPEAK THEIR LANGUAGE
Start creating topics based off of your tribes’ interests and pain points.
As you can see on Tim Ferriss’ blog, you have all the topics that he generally talks about:
These are the topics that his tribe was interested in.
He didn’t go in and say, ‘okay, I will be known as the niche of creating psychedelics, etc.’
What he did was he just talked about what resonated with him, and then he reached out with what resonated with his audience.
And then it turns into this feedback loop of what you need to create..
How you can you stay relevant in your audience’s mind, and when you do this, you create this content machine where you never run out of ideas!
One of the biggest things you can do if you have a small audience or if you have friends that actually look up to you for anything, is you ask them what is their biggest pain point or challenge in their life.
And start creating content around that.
Now watch your audience organically start growing like crazy!
Step #3 FOCUS ON HITTING CRITICAL MASS
Tim Ferriss didn’t start selling things until he hit critical mass.
This is a problem with most business owners and marketers, and this happened to myself a lot!
We come from this place of scarcity where the first thing that we want to do when we want to make money online is we want to just make a damn dollar online!
Most of the time, we burn out our audiences way too early instead of just providing more and more value.
Some of the best podcasters for example, the reason why they made the most money is because they never got into it for a business.
If you look at Joe Rogan, he generally makes around 20 to 50 million dollars a year.
And he was podcasting for the first 10 years just because he loved having a conversation and giving value to his audience.
He barely even know how to monetize!
Most people that get into business that aren’t marketers or entrepreneurs is they have no idea how to monetize.
But they accidentally become millionaires through the process because they just cared about giving value.
When you’re in this process of trying to make money, remember that as an entrepreneur, one of the biggest mistakes that will ever happen to you is operating in a place of scarcity.
If you operate in a place of scarcity, your audience can sense that, so what you need to do is just not really sell anything!
The key to this is to not sell anything and to GIVE MORE VALUE.
I myself, came from the internet marketing niche where it’s very easy for someone to go from 0 to 1 million in a relatively short amount of time like 12 months.
Now if you really want to get rich, focus on the 10 to 30-year vision instead of the immediate instant gratification!
If you hold off and you focus on gaming a bunch of content, you hit critical mass..
Remember, Tim Ferriss didn’t hit critical mass until he reached 100,000 views per episode.
That is when you start selling stuff, and then guess what?
In the long run, you actually end up making more if you take a sample section of the entire time period than if you would have just initially started trying to make money online.
Step #4 SAY NO TO 99.99999% OF SPONSORS
Start attracting sponsors.
Like I said previously, businesses have advertising budget.
They’re either gonna spend that budget on Facebook ads or on influencer marketing.
What’s happening is that these big companies are not moving to the influencers, moving to the people that have built the tribes, or moving to the people that have built the audience and now, they’re giving them the money.
So this $54, 000, that’s not your simple eCourse or eBook, that’s not a $997 course investment, and this isn’t a b2c. This is now business to business!
You could have companies like square or the CashApp or other companies like Duolingo, Shopify, or Clickfunnels.
They have this big advertising budget that needs to go somewhere.
Many times, it could go on Facebook ads but many times it can go to your exact audience where they hang out, where they congregate most of times, it’s sent around audiences that are following influencers.
So what happens in Tim Ferriss and what happened to me when my brand started going up is people were just DM’ing me like, ‘Hey! Can I do a sponsored post?.. etc’
The problem with most of them is many of them did not resonate with my audience.
And the biggest problem that most people do is they just say yes to everything because they just want to make money now.
But what Tim Ferriss does so brilliantly is he says no to 99.9% of them which what happens is, even though he might not have that extra 5 or 10 million dollars a year in extra revenue..
What he does now have is his clients and his audiences’ trust that when he does promote something, the audience knows that he is for real!
Most of the time, people that come up to you for a sponsor post or whatever sponsorship is that, something that you don’t resonate with..
and if you don’t resonate where your audience won’t resonate with it, remember you are a tribe so your values are the tribes values.
If it doesn’t value with you, why are you going to try and being a prostitute and selling it to your services or selling it to your audience?
What you need to do is you need to say no to most of them!
Seriously, every single time they say, ‘Hey! Can I do smiles pose or say..’
Because you care more about your audience, which leads me to the fifth thing.
Step #5 Don’t Be A Business Prostitute
Focus on your audience more than the money because in this day and age, remember money is just a man-made thing.
It was an institutionalized investment or an invention.
What you need to start monetizing now is ATTENTION.
Attention is where everything’s gonna go and focusing on harnessing that attention and maintaining that relationship because you understand that you could kind of be in the 150 tribe of all of your audiences..
Because now, they’re actively listening to you and your content every single day which leads me to the sixth thing..
Step #6 THE BIG OPPORTUNITY..
And that is his business!
Do you think $54, 000 is a lot?
It’s only going to increase from now on, because here’s why for example, check this out:
In 2013, $45 million was spent on podcasting ad sales.
Now this forty five million went to people like Joe Rogan, went to people like Tim Ferriss, or went to people like all these guys that have podcasts and YouTube channels.
$45 million only compared to the $40 billion in total radio revenue!
Think about these companies out there, the big companies are spending forty billion dollars a year to get their message out there!
Now what’s going to happen when they start realizing that influencer marketing is the way to go and they start moving these budget dollars into this fifty four thousand dollars that Tim Ferriss makes per episode.
First sponsorship is gonna be pennies compared to all the new money that is coming in which really begs the question, what industry are you in?
Are you an industry that’s gonna catch one of the biggest trends in the world?
And that is monetizing an audience at a heart level because you’re promoting things that you truly value and trust.
That’s why, for example, for my YouTube channel..
I’ve been known for my youtube channel and my blog for the exact same reason why I started podcasting because even though this is like a newer thing..
I know that my audience don’t have time to watch YouTube videos all day.
If anything, I actually don’t want them to watch YouTube videos all day.
Many of them are moving, doing amazing crazy things, and creating amazing inventions and businesses.
Most of the time, like for example me, I don’t consume any videos!
All my consumption is podcasts.
So if I’m consuming podcasts and I’m trying to attract more people like me, how can I do that when all the people like me are listening to a podcast instead of watching videos, right?
This is just one avenue of traffic to send to this thing.
And that’s kind of like what I want to inspire you to do as well.
I’ll see you guys on the next episode or in my podcast.
See you guys!
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